When Do the Forex Markets Open and Close?
Understand the continuous global rhythm of Forex trading and when the market pauses. Master the timing of the world's largest financial market.
The foreign exchange, or forex, market stands as the world’s largest and most liquid financial market. It facilitates global currency exchange, operating in a decentralized network that allows continuous trading across different time zones.
The 24/5 Nature of Forex Trading
The forex market operates continuously, 24 hours a day, five days a week. This uninterrupted trading environment is made possible by a global network of financial centers. As business days conclude in one major region, they begin in another, allowing trading activity to seamlessly shift around the world.
Key Global Trading Sessions
The continuous forex trading day is segmented into four primary trading sessions: Sydney, Tokyo, London, and New York. Each is defined by the active hours of major financial hubs. Traders often refer to these times in Eastern Standard Time (EST) or Greenwich Mean Time (GMT) for consistency.
The Sydney session initiates the trading week, opening Sunday at 5:00 PM EST (Monday 10:00 PM GMT) and closing Monday at 2:00 AM EST. This session is characterized by lower volatility and calmer market conditions. Currency pairs involving the Australian Dollar (AUD), New Zealand Dollar (NZD), and Japanese Yen (JPY), such as AUD/USD and NZD/USD, frequently see active trading during these hours.
Following the Sydney session, the Tokyo session, also known as the Asian session, opens Sunday at 7:00 PM EST (Monday 12:00 AM GMT) and concludes Monday at 4:00 AM EST. This period serves as the heart of Asian trading, exhibiting moderate liquidity and volatility. Key currency pairs like USD/JPY, EUR/JPY, and AUD/JPY are active, influenced by economic data from Japan and other Asian economies.
The London session, often referred to as the European session, commences Monday at 3:00 AM EST (Monday 8:00 AM GMT) and closes Monday at 12:00 PM EST. As the largest and most liquid trading session, it accounts for a significant portion of daily forex volume, often between 30% to 40%. This session is known for its high volatility and frequently sets the dominant trends for the trading day. Major currency pairs such as EUR/USD, GBP/USD, and USD/CHF experience substantial activity.
The New York session, or North American session, begins Monday at 8:00 AM EST (Monday 1:00 PM GMT) and ends Monday at 5:00 PM EST. This session is marked by high liquidity and volatility, especially during its morning hours. It is influenced by U.S. economic data releases and sees heightened trading in USD-centric pairs like EUR/USD, GBP/USD, and USD/JPY.
Periods of Overlapping Liquidity
Increased market activity, higher volatility, and tighter spreads often characterize periods when two major trading sessions overlap. These overlaps create more dynamic trading conditions due to the simultaneous participation of market participants from different regions.
The Sydney and Tokyo sessions overlap from Sunday at 7:00 PM EST until Monday at 2:00 AM EST. While calmer compared to other overlaps, this period is important for currency pairs involving the Australian Dollar, New Zealand Dollar, and Japanese Yen. It allows for the initial digestion of weekend news and sets early market sentiment.
A shorter, but significant, overlap occurs between the Tokyo and London sessions, from Monday at 3:00 AM EST to 4:00 AM EST. During this one-hour window, Asian traders may be closing positions while European traders are beginning their day. This convergence can lead to increased liquidity and volatility, particularly impacting currency pairs involving the Japanese Yen and the Euro.
The London and New York session overlap is widely considered the most active and liquid period in the forex market. This window occurs from Monday at 8:00 AM EST to 12:00 PM EST. During these four hours, both of the world’s largest financial centers are fully operational, leading to the highest trading volumes and volatility. Major economic data releases from the U.S. and Europe frequently occur, driving price movements in major currency pairs.
Market Closures and Weekends
The forex market maintains its 24-hour, five-day-a-week schedule, but it observes a weekend closure. Trading ceases Friday evening at 5:00 PM EST (10:00 PM GMT) as the New York session concludes. The market reopens Sunday evening at 5:00 PM EST (10:00 PM GMT) with the start of the Sydney session.
Beyond weekends, major public holidays in key financial centers can also lead to market closures or reduced liquidity. Events occurring during these closed periods, such as economic or geopolitical news, can result in “gaps” when the market reopens. These gaps represent a difference between the closing price of one session and the opening price of the next, reflecting market reaction to events that occurred while trading was paused.